Safety Management System Implementation
Industries often viewed accidents as inevitable and acceptable. However, a multinational corporation (MNC) faced significant challenges in improving its safety
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Necessity is the mother of invention, and this holds true for a large multinational chemical company that faced a significant dip in profitability due to various reasons, including the high cost of imported energy, leading to declining margins. If swift action had not been taken, the company would have faced substantial losses. In fact, the organization experienced its first loss in the first quarter of that year after 20 years of continuous profit.
Upon closer examination, it became evident that the cost of production was relatively high, making it difficult for the company to compete in the market. Factors contributing to these costs included high labor costs, expensive energy, and losses incurred due to various inefficiencies.
Under the leadership of a senior executive, a cost reduction plan was initiated to target a reduction in the cost of production per unit. The team, which included the promoter of BiC, worked diligently, and within a few months, the desired cost reduction was achieved. The management gained confidence and decided to engage an external consultant from a multinational company to further improve the situation.
The multinational consultant's team began a training program to enhance the financial perspective across the organization. A select group of leaders was chosen to undergo training and subsequently implement the designed program using internal resources. The team collaboratively developed a systematic approach to reduce costs at every step, implementing experiments across the organization and its associated chemical and other plants.
The financial results were outstanding, with profitability increasing multifold and the company getting back on track. Importantly, a culture of value for money was instilled throughout the organization, fostering a money mindset. Every action and decision became associated with costs, ensuring that individuals considered the financial implications and anticipated benefits before undertaking any work.
Industries often viewed accidents as inevitable and acceptable. However, a multinational corporation (MNC) faced significant challenges in improving its safety
